Oil Gains as Libya Fighting Escalates; UBS Raises Brent Forecast
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Oil rose for a second day in New York as fighting in Libya, Africa’s third-largest producer, renewed concern Middle East supplies may be threatened by escalating civil unrest.
Futures advanced as much as 1.1 percent after the U.S. signaled it favored allowing foreign intervention against Libyan leader Muammar Qaddafi’s forces. UBS AG raised its 2011 Brent crude forecast because of the turmoil. Oil climbed yesterday on concern violence in Bahrain will spill into Saudi Arabia while prices dropped earlier today on speculation Japan’s earthquake will curb demand.